Sacombank posts 51% increase in profits in 2023, to complete restructuring in 2024
Sacombank posts 51% increase in profits in 2023, to complete restructuring in 2024
Sacombank has announced its 2023 fourth quarter results that show pre-tax profits rose by 45 per cent year-on-year to over VNĐ2.7 trillion (US$110.6 million).
A Sacombank branch in HCM City. Sacombank has achieved all key business targets approved by shareholders for 2023. — Photo courtesy of the bank |
Full-year profits were VNĐ9.6 trillion ($393.5 million), a 51 per cent increase from 2022.
This is a remarkable result for Sacombank in the context of the domestic economy facing many difficulties and the international financial market experiencing strong fluctuations.
It has completed 100 per cent provisioning for unrecovered debts that it sold to the Vietnam Asset Management Company.
The bank is expected to complete its restructuring scheme in the first half of 2024.
As of the end of 2023 its total assets were in excess of VNĐ674 trillion ($27.6 billion), an increase of 13.9 per cent during the last year.
It had deposits of more than VNĐ578 trillion, up 11.3 per cent.
During the year, Sacombank lowered deposit interest rates multiple times and now pays a highest rate of only 5 per cent, down from 9 per cent at the beginning of 2023.
It rolled out preferential lending packages worth over VNĐ131.5 trillion to help foster production, and increased its loans outstanding by 10 per cent to nearly VNĐ493 trillion.
Its capital adequacy ratio was 9.1 per cent, and loans-to-deposit and net interest margin ratios were 82.8 per cent and 3.9 per cent.
ROA and ROE were at 1.2 per cent and 18.3 per cent, increases of 0.3 per cent and 4.5 per cent respectively.
EY Vietnam Consulting Joint Stock Company recently presented a certificate to Sacombank for fully adopting Basel III risk management standards, a set of high-level standards for banking.
The bank’s non-performing loans were well controlled at 2.1 per cent, and profitable assets were improved to nearly 90 per cent of the total.
Sacombank has also invested significantly in digitalisation to keep up with the market’s advances, and improved its products and services to deliver a better customer experience.
It reported a 10 per cent increase in transaction value on its online channels to more than VNĐ6.4 quadrillion.
With its mission of “Together We Grow” since establishment, Sacombank has always taken social activities to be as important as business goals, always actively supporting the Government's policies to help boost economic growth, promoting green credit, and building sustainable development models and processes based on ESG standards.
